Car accident settlements are the resolution of legal claims or disputes arising from car accidents. When you are in a car accident due to someone else's negligence or fault, you may have the legal right to compensation for your medical expenses, property damage, lost earnings, pain, and suffering.
A settlement check is your ultimate goal if you have suffered an injury in a car accident, but you must ensure it is enough compensation for your situation. It is one thing to get money for your car accident injuries, but that outcome can be a loss if the amount you receive is insufficient to pay for the damages you have suffered.
Before you can file a claim for car accident injuries, you should be familiar with the legal process and how it may work in your case. You need to understand any potential timelines in your claim and how the insurance company may operate in your case. It is essential to consult with a knowledgeable car accident attorney who can assess your case and guide you through the legal procedures. They can evaluate the evidence, negotiate with the insurance company, and advise you on the best course of action.
When you hire a car accident lawyer, they will explain the legal process and inform you of what you can expect. Of course, everything depends on the facts and circumstances of your car accident case. Your car accident attorney will work to compile and draft your claim before fighting for you to get every dollar that you are due in a settlement check. First, you must go through an entire legal process, where you need to be patient to get top dollar for your car accident injuries.
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The Claims Process Is a Largely Informal One
You can engage insurance companies to negotiate a potential settlement with them in several ways. Of course, you can file a car accident lawsuit, but that is often not your first choice in the legal process. Your car accident lawyer may advise that you begin by working with the insurance company informally through the claims process.
Before you file an insurance claim, your car accident attorney will build the case that may entitle you to financial compensation. You must show that the other driver in the crash was negligent for them to owe you money, and your car accident attorney will do a lot of legwork before approaching the insurance company. Your claim will include proof of negligence and evidence that supports your damages. You will seek a certain sum from the insurance company as part of your claim.
Your car accident attorney can file your claim more informally, or they may send the insurance company a demand letter. The latter institutes a more formal claims process, albeit one that stays out of court. The demand letter will clarify to the insurance company that your next step may be a lawsuit if it does not pay you the amount it owes.
You Need to Negotiate to Get a Settlement
Once you have provided the insurance company with the evidence that backs your claim, there are three potential outcomes:
- The insurance company may accept liability in your case and make you a settlement offer.
- You may be partially blamed for the accident, but the insurance company will still make you a settlement offer for the portion of the accident that was not your fault.
- The insurance company can deny your claim altogether, stating that you have not provided evidence of its policyholder's responsibility for the crash.
Even if the insurance company offers you a settlement, you are closer to the beginning of the legal process than the end. Insurance companies make you a low settlement offer with the full expectation that you will need to negotiate with them to reach a more reasonable final amount.
Your car accident lawyer will advise whether you should accept or reject an individual settlement offer. Usually, you will need to reject at least the first settlement offer. Insurance companies want to avoid paying the total value of your claim, and they will try to wear you down throughout the legal process.
The insurance company and your lawyer will exchange settlement offers and figures throughout the claims process. You must be patient and understand that car accident settlements do not happen overnight. It can take a year to settle your claim if insurance companies make things difficult, and it can even be months before they respond to your initial claim in the first place.
The hope is that you can resolve your claim informally with the insurance company so you do not have to go further in the legal process. When a car accident lawyer represents you, insurance companies may show you more respect because they fear the consequences when they try to go up against your attorney in court.
You Can Still Receive a Settlement Through the Car Accident Lawsuit Process
Although a settlement is the most likely outcome when you file a car accident lawsuit, the insurance claims process is not the only way to receive compensation for your injuries. A small percentage of car accident lawsuits will end up in a trial before a jury.
Insurance companies will still likely try to settle your case even if you have already filed a lawsuit. Your car accident lawsuit can almost progress to a trial before reaching a settlement.
Your car accident attorney may even mediate with the insurance company, either of your own accord or directed by a judge, to help you resolve the case.
Insurance companies are still in your case when you file a lawsuit. They are the ones who hire the attorney to represent the driver, and they will pay for your settlement.
There Are Certain Conditions to Receiving a Car Accident Settlement
A car accident settlement is a negotiated agreement between you and the insurance company,
and as in every contract, you give something to the other in an agreement. Obviously, the insurance company is giving you money to pay for your car accident injuries.
You may not realize that you are giving something to the insurance company. Effectively, you are giving up the right to sue in the future. Before the settlement agreement, you had a right to financial compensation because the other driver's negligence injured you in the crash. When you agree to a settlement with the insurance company, there also needs to be consideration coming from you. Consideration is a legal term that describes giving or giving up something of value to the other party.
Your settlement agreement pays you money in exchange for giving up the right to sue or seek any additional financial compensation in the future. The settlement agreement contains a clause that states that you release the insurance company from any further liability in connection with your claim. Unless one of a few exceptions applies, you cannot return for more money, even if you did not receive enough to cover your injuries initially.
Thus, you must negotiate to get every dollar you deserve because it is your only chance. If you do not maximize the value of your car accident claim now, you are losing the option forever. Therefore, you must be sure you are getting enough compensation now.
How the Mechanics of a Car Accident Settlement Work
Several things must happen between when you agree to a settlement and when you receive the money. First, you must sign an actual settlement agreement (which the insurance company must also sign). Refrain from thinking that settlement agreements are standardized for every car accident claim. There may be circumstances unique to you that both parties must consider for a settlement agreement, and your car accident lawyer may need to negotiate the specific language with the insurance company.
Once you sign the settlement agreement, receiving your car accident settlement money may take several more weeks. First, the insurance company must get the necessary approvals to initiate the money transfer. How high up the insurance company must go to get these approvals depends on the size of your car accident settlement.
The settlement money will initially get transferred to your car accident lawyer's escrow account. At this point, your car accident lawyer will ensure that others with a right to payment receive their money. For example, your health insurance company or medical provider may have a lien against your settlement, which you must pay before receiving money. In addition, your car accident attorney also gets paid their contingency fee, which is the portion of your settlement that you promised to pay them.
You Must Choose How You Want to Receive Your Settlement
You may take all your settlement money at once in a lump-sum payment. Alternatively, you can accept a structured settlement that pays you in certain installments, both now and in the future. You will decide how you want to receive your money by the time you get your check, and your car accident lawyer can advise you about the pros and cons of each course of action. Either way, preparing to receive it beforehand makes sense if you expect a large sum. If your damages will last far into the future, you need to know how to preserve the money to be there when needed. Otherwise, you may spend too much too soon, leaving you in a precarious financial position.
How Can I Work to Get the Best Possible Car Accident Settlement?
The most effective way to put yourself in a position to get the most possible money for your injuries is to immediately hire a car accident attorney to represent you in dealing with the insurance company. A car accident attorney can do the following for your case:
- Answer all of your questions and explain your legal options for obtaining compensation.
- Investigate your car accident and assemble the legal case that you need to persuade the insurance company to accept liability for the crash.
- Quantify your damages after reviewing the accident's impacts on you and working with expert witnesses as necessary.
- Prepare an insurance claim or lawsuit to file on your behalf with the insurance company and jury, respectively.
- Negotiate with insurance companies, persuading them to raise their offer to a more fair and reasonable level.
- Take your case to court, or use the threat of a lawsuit as leverage to get insurance companies to increase their settlement offer.
As you can see, your car accident lawyer plays an invaluable role in your case, and you need their help to get the full settlement you deserve. If you wonder how much you need to pay to get a car accident lawyer working for you, the answer is nothing out of your pocket. Your car accident lawyer only gets money for their time and services if you win your case, and then their payment comes directly from the proceeds of your settlement check or jury award.
Contact a Car Accident Attorney as Soon as Possible
Without a car accident attorney, you will operate in the dark, not knowing what the insurance company may do in trying to settle your claim. Time may pass, worsening your financial situation and placing you in a position of desperation. Insurance companies will try to take full advantage of it, and you may sign away your legal rights for pennies on the dollar.
Having a lawyer on your side can protect you from the tactics insurance companies often use to minimize payouts. These companies have teams of adjusters and lawyers working to protect their interests and save money. Without legal representation, you may be disadvantaged when negotiating with these professionals. However, with a lawyer advocating for you, they will level the playing field and ensure you receive fair treatment.
Hiring a lawyer for your car accident settlement case is crucial to achieving a favorable outcome. Their knowledge and experience can significantly impact the amount of compensation you receive. By entrusting your case to a skilled personal injury attorney, you can focus on your recovery while they fight for the justice you deserve.
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